Plastic Omnium - 2020 Universal Registration Document

2020 STATUTORY FINANCIAL STATEMENTS Notes to the statutory financial statements www.plasticomnium.com PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2020 272 $ # $ $ #$ $%$ ") #$ $ $# 6.4 The information below constitutes the Notes to the Balance Sheet before distribution for the year ended December 31, 2020, for which the total amounted to €2,883,472 thousand and the result was €104,496 thousand. SIGNIFICANT EVENTS OF THE YEAR From January 1, 2020, a new governance structure was put in place ● providing in particular for the division of the functions of Chairman and Chief Executive Officer. Laurent Burelle remained Chairman of Compagnie Plastic Omnium SE. Laurent Favre has been appointed Chief Executive Officer of Compagnie Plastic Omnium SE. Since February 13, 2020, Compagnie Plastic Omnium SE has held the ● shares of Plastic Omnium Modules, whose sole business to date is to hold the shares of HBPO, a company specializing in the design, development and assembly of automotive modules. These shares, valued at €101.4 million, were granted by its subsidiary Plastic Omnium Auto Exteriors SA by way of a cash contribution. Prior to this transaction, Compagnie Plastic Omnium SE subscribed to a capital increase of the subsidiary Plastic Omnium Auto Exteriors SA for €156.6 million on January 22, 2020. On March 24, 2020, Compagnie Plastic Omnium SE transferred to its ● subsidiary Plastic Omnium Advanced Innovation and Research the commitments made on July 16, 2019 in the AP Ventures fund, a venture capital fund specializing in hydrogen and fuel cells. Compagnie Plastic Omnium’s commitment was $30 million, or €26.9 million, over the life of the fund. Of this commitment of USD30 million, €1.5 million previously paid by Compagnie Plastic Omnium SE was transferred to its subsidiary Plastic Omnium Advanced Innovation and Research. On May 29, 2020, Compagnie Plastic Omnium SE repaid the €500 ● million bond issued in 2013 that had reached maturity. At December 31, 2020, the amount of bonds and Schuldschein loans amounted to €1.1 billion. Compagnie Plastic Omnium SE set up an additional €530 million of ● credit lines, bringing the outstanding amount of confirmed medium-term credit lines to €1,870 million at December 31, 2020. In addition, €200.5 million of commercial paper has been issued by the Company at December 31, 2020. The Company reduced the net amount of its loans to subsidiaries by ● €120.2 million. On November 23, 2020, Compagnie Plastic Omnium SE subscribed to a ● capital increase of the reserves of its subsidiary Plastic Omnium GmbH with a cash contribution of €110 million. Plastic Omnium GmbH holds the shares of the German companies in the Intelligent Exterior Systems and Clean Energy Systems divisions. The securities of this entity were impaired by €60 million at December 31, 2020. award 228,373 performance shares to the employees and corporate officers of Compagnie Plastic Omnium and/or of companies in its Group. Performance shares will vest on April 30, 2024. The cost associated with this plan was estimated at €3.6 million on December 31, 2020. On the vesting date of the shares, the relevant subsidiaries with plan beneficiaries will be re-invoiced for the cost. Upon authorization by the Combined Shareholders’ Meeting of April 26, ● 2018, the Board of Directors decided on December 11, 2020 to freely On December 15, 2020, the FPCI Aster VI made a €1 million ● distribution. In 2020, the fund also made calls for funds totaling €1.5 million. On December 18, 2020, Compagnie Plastic Omnium SE subscribed to ● a capital increase of its subsidiary Plastic Omnium Management 4 with a cash contribution of €10 million. Compagnie Plastic Omnium SE continued its share buyback program ● under the authorization granted by the Combined Shareholders’ Meeting of April 23, 2020. Buybacks carried out in fiscal year 2020 totaled €12.1 million. ACCOUNTING POLICIES AND PRINCIPLES The financial statements of Compagnie Plastic Omnium SE have been prepared in accordance with the provisions of the French Commercial Code and the French General Accounting Plan (ANC regulation 2014-03 of June 5, 2014 amended by regulation no. 2018-07 of December 10, 2018). The annual financial statements include the provisions of the French Accounting Standards Authority (Autorité des Normes Comptables – ANC) regulation 2015-05 for financial futures and hedging transactions, as well as the recommendations of July 24, 2020 relating to the consideration of the consequences of the Covid-19 event in the financial statements. The accounting conventions for preparing and presenting the Company statutory accounts have been applied in accordance with the following basic assumptions: going-concern; ● consistency of accounting principles; ● separation of accounting periods. ● The basic method used for the items presented in the accounts is the historical cost method. The accounting policies used to prepare the 2020 financial statements are the same as those used in 2019. The significant accounting policies applied are described below.